Series 99 Study

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How should the amount of Markup be determinded by the Market Maker

The amount should be based on the current market price of the security. Not the Market Maker's cost (63228)

What is TRACE

Reporting system created to provide greater transparency in the corporate bond market.

A bond on which a call notice has been issued is purchased by a customer. Which yield must be disclosed on the confirmation?

When bonds are called, the yield to call must be disclosed on the confirmation. If a call notice has not been issued, the lower of the yield to call or the yield to maturity must be disclosed. (63649)

A registered representative of the firm has been terminated. The Operations Professional responsible for this information must prepare it for posting:

Information on terminated employees of the firm must be prepared after the conclusion of employment. (63701)

Which of the following choices is considered a good control location?
A domestic or foreign bank
In transit between a broker-dealer's offices
The DTCC
All of the above are considered good control locations

A broker-dealer, clearing corporation, foreign bank, depository, clearing agency, registered national securities exchange, or securities that are in transit between any of the above are all considered good control locations. (63816)

What is the maximum annual contribution for a Keogh plan?
$5,000
$6,000
$17,000
$50,000

The maximum annual contribution for a Keogh plan is 100% of pretax income up to $50,000 each year (up from $49,000 in 2011). (66201)

Who is SIPC

The Securities Investor Protection Corporation (SIPC) is a nonprofit corporation that was created by an act of Congress in 1970. SIPC insures a customer's account for up to $500,000 in the event of a brokerage firm's failure. SIPC is not a government-sponsored agency nor a regulatory body. (63194)

A municipal finance professional (MFP) who makes a political contribution in excess of the allowable amount subjects his firm to a ban on municipal securities business with the issuer of the candidate for: No ban is imposed, 1 year, 2 years, 5 years

A two-year ban on securities business with the issuer is imposed if an MFP makes a political contribution in excess of allowable amounts. (63450)

A registered representative has obtained a list of stockholders' names and wants to use this to solicit orders. Is this an acceptable practice?

While this is generally prohibited under SRO rules, it is permitted if the list is provided by and used specifically for the benefit of the corporation. (63456)

The spouse of an Operations Professional is an employee of a company and is in the process of raising capital through an equity IPO. The company is allowing employees and members of the employee's immediate family to purchase up to 500 shares of the IPO. Is the Operations Professional permitted to purchase the IPO?

This is considered an issuer-directed offering and allows associated persons to purchase IPOs if the issuer specifically directs the offering to them. In this case, the issuer is directing the IPO to employees and immediate family members of employees, allowing the Operations Professional to purchase up to 500 shares. The does not allow the Operations Professional to purchase additional shares. The purchase does not need to made directly from the company raising the capital.

A registered representative (RR) has alerted an Operations Professional that funds will be transferred by a country in which U.S. economic sanctions and embargoes exist. The firm's BEST course of action is to:

OFAC administers U.S. economic sanctions and embargos with a number of countries such as Cuba, North Korea, and Iran. A U.S. bank that has knowledge of a payment to or from one of these countries is required to block the transaction and report it to OFAC within 10 days. (63547)

The main purpose of the Financial Crimes Enforcement Network (FinCEN) is to:

The main purpose of FinCEN is to create and implement policies and procedures to detect and prevent money laundering. There are two primary means FinCEN uses to accomplish its objectives. First, under the Bank Secrecy Act (BSA), financial institutions such as broker-dealers are required to file certain reports and second, FinCEN uses this information to provide law enforcement agencies with data to assist in combating money laundering. (63549)